1. Which of the following may be considered to be primary objective of the auditor in the examination of accounts receivables? a. Determine the approximate time of collectability of receivables b. Determine the relationship of receivables to sales c. Determine the reasonableness of the sales figure d. Establish validity and collectability of receivables
1. Which of the following may be considered to be primary objective of the auditor in the examination of accounts receivables?
a. Determine the approximate time of collectability of receivables
b. Determine the relationship of receivables to sales
c. Determine the reasonableness of the sales figure
d. Establish validity and collectability of receivables
2. In determining the validity of
a. Direct telephone communication between the auditor and debtor
b. Confirmation replies received directly from customers
c. Credits to accounts receivable from the
d. Documentary evidence that supports the accounts receivable balance
3. An auditor should perform alternative procedures to substantiate the existence of accounts receivable when
a. Pledging of the receivables is probable
b. No reply to a negative confirmation request is received
c. No reply to a positive confirmation request is received
d. Collectibility of the receivable sis in doubt
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